Fillable Form Ia 134 - Iowa S Corporation Apportionment Tax Credit

IA 134 S Corporation Apportionment Tax Credit Instructions

Iowa resident shareholders of S corporations may be

Line 13: Other Deductions - Do not include

eligible for an S Corporation Apportionment Tax

amounts paid by the corporation that would be

Credit if the S corporation carries on business

allowed as itemized deductions on a shareholder’s

outside Iowa. For tax years beginning on or after

return if they were paid directly by a shareholder for

January 1, 2013, estates and trusts with a situs in

the same purpose.

Iowa that are shareholders in S corporations may be

Line 24: Cash or property distributions from

eligible for the credit if the S corporation carries on

income

not

previously

taxed

Iowa

business outside of Iowa.

Distributions from income not previously taxed by

For married filing separate taxpayers, filing status 3

Iowa include the amount of all cash distributions and

or 4, each spouse must calculate a separate credit

the fair market value of all property distributions

on a separate IA 134.

made during the year. Do not include the following:

If a taxpayer is a shareholder in multiple S

a. Distributions not subject to Iowa tax. Example:

corporations, a separate IA 134 must be completed

interest from federal securities or certain securities

for each S corporation.

issued by Iowa.

Resident or trust shareholders of all S corporations

b. Distributions from income previously taxed by

which carry on business activities in at least one

Iowa for a year in which the S corporation was a C

other state may, at their election, determine the S

corporation and which is taxed as a dividend or

corporation income allocable to sources within Iowa

capital gain for federal income tax purposes.

by allocation and apportionment of the S corporation

income.

c. Distributions from income previously taxed by

A shareholder who has elected to apportion income

Iowa for a year prior to the first tax year the resident

and then elects not to apportion income cannot re-

shareholder elected to apportion income.

elect to apportion income for three tax years

d. Distributions paid from income for which the

immediately following the first tax year in which the

corporation can show that Iowa tax has been

shareholder elected not to apportion income, unless

previously paid.

the Director of the Iowa Department of Revenue

consents to the election.

Line 34: S Corporation Apportionment Tax Credit

Enter in Part I, column D of the IA 148 Tax Credits

If a taxpayer claims the S Corporation Apportionment

Schedule,

using tax credit code 11.

Any credit in

Tax Credit, then the taxpayer may not take an Out-of-

excess of the tax liability cannot be carried forward

State credit against Iowa income tax for income taxes

and should be entered as expired in column G of the

paid to another state or foreign country on the S

IA 148.

corporation income.

Schedule A: Federal Income Tax Attributable to S Corporation Income

Shareholders who file a federal joint return and status 3 for Iowa can refer to Iowa rule 701-50.10 for clarification

1. Taxpayer’s share of federal S corporation income from line 15, IA 134.

2. Federal adjusted gross income from line 37, federal 1040; or line 9, federal 1041.

3. Divide line 1 by line 2. Enter percentage to 4 decimal places (not to exceed 100%).

4. Federal income tax before credits from line 44, federal 1040; or federal 1041, Schedule

G line 1a.

5. Federal alternative minimum tax from line 45, federal 1040; or federal 1041, Schedule

G, line 1c.

6. Net federal income tax. Add lines 4 and 5.

7. Multiply line 3 by line 6.

8. Federal income tax credits related to S corporation (exclude backup withholding and

fuel tax credit).

9. Federal income tax attributable to S corporation income. Subtract line 8 from line 7.

41-134b (07/25/14)

*1441134029999*

Form Ia 134 - Iowa S Corporation Apportionment Tax Credit - 2014 Page 2

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